Walker, 23, apologised for the incident, which occurred in June, after the Daily Mail ran a Monday morning story about his night out in a Sheffield club.
Laughing gas - or nitrous oxide - is not illegal, but has associated health risks which the player acknowledged in his apology.
The FA deemed the matter closed, saying it had spoken with Walker, but that no further action would be taken.
"The FA and the England manager have spoken to Kyle about the matter and he has assured us it will not happen again," the statement read.
"Kyle has accepted this mistake. He will not face any action under the England Player Code of Conduct.
"The FA and England manager will not be making any further comment on this matter and will be focusing their full attention on Tuesday's match with Ukraine."
The timing of the revelation was questioned by many fans, with the night in question having been back in June, when Walker missed England's friendly with Brazil due to injury.
England face Ukraine in Kiev on Tuesday and need seven points from their next three matches to ensure automatic qualification for the 2014 World Cup in Brazil.
Nitrous oxide, known as laughing gas or 'hippy crack', is most often administered by dentists and doctors as an anaesthetic but is also popular at clubs and festivals for the brief 'high' it gives users.
While not regarded as particularly dangerous, overuse can cause long-term health problems, and overdosing can on occasion be lethal.
- Sports & Recreation
- Laughing gas